Research Detail
| 2019/05/07 / Erste Group Research |
Credit Report | CEZ (EN) CEZ reported consolidated group revenues of CZK 184.5bn for the FY 2018. Profitability decreased somewhat in 2018 compared to the previous year, but at 26.9%, it remained at a high level. Net debt has increased by 11.2% y/y to CZK 151.3bn in 2018. Consequently, all credit ratios have weakened. In April 2018, Moody's affirmed its rating Baa1 and changed the outlook to positive. S&P affirmed the rating A- with a stable outlook in November 2018. Both rating agencies highlight CEZ's leading market position in the Czech electricity market with a strong state support (70% state-owned) as well as the stable and predictable cash flows. For 2019, due to higher realization prices, CEZ's management expects a higher EBITDA – for the first time in a decade. The target value is at CZK 57-59bn (2018: CZK 49.5bn). Adjusted net income shall be at CZK 17-19bn (2018: CZK 13.1bn. The Czech government’s energy policy foresees the development of a new nuclear power unit in the country. A possible participation of CEZ has not been decided yet. The company’s investment plan, however, has already been adjusted. |
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General information
| Author | Erste Group Research |
| Date | 2019/05/07 |
| Language |  |
| Product name | Credit News |
| Topic in focus | Credits/ Corporate bonds |
| Economy in focus | Czech Republic |
| Currency in focus | Czech Koruna |
| Sector in focus | - |
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